What is a Dealer Doc Fee?

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Autohitch

4 min readJun 10, 2024

Understanding Dealer Documentation Fees

When buying a car from a dealership, you may notice a “documentation fee” or “doc fee” listed on your purchase contract.

This fee can come as a surprise to many car buyers because you would think that filling out documents would be included in the process.

You would be wrong!

In this article, I’ll explain what doc fees are, whether they are negotiable, how much they typically cost, and if they are legal.

· Understanding Dealer Documentation Fees
· What is a Dealer Documentation Fee?
· Are Documentation Fees Negotiable?
· How Much are Documentation Fees?
· Are Documentation Fees Legal?
· The Bottom Line
∘ Citations:

What is a Dealer Documentation Fee?

A documentation fee, also known as a doc fee, is a charge that dealerships levy to cover their administrative costs for processing a vehicle purchase.

Dealers say this fee covers expenses like preparing and filing contracts, registering the vehicle, and other paperwork.

However, many experts argue that doc fees are already built into a dealership’s business costs and profit margins.

Consumer advocates often call them “fake fees” and say they are simply a way for dealerships to squeeze more profit out of each sale.

Are Documentation Fees Negotiable?

In most cases, documentation fees are non-negotiable. Dealerships typically have a set doc fee that they charge on every vehicle sale.

Some states regulate doc fees, but most allow dealerships to charge whatever they want.

However, you may be able to negotiate the overall price of the vehicle to account for the doc fee.

If the dealership won’t budge on the doc fee itself, try getting them to reduce the price of the car by an amount equal to the fee.

How Much are Documentation Fees?

As you can see, documentation fees are all over the map, ranging from $55 in California to nearly $800 in Florida. Most states average between $200-$400.

State: Alabama — Average Doc Fee: $489
State: Alaska — Average Doc Fee: $299
State: Arizona — Average Doc Fee: $499
State: Arkansas — Average Doc Fee: $129
State: California — Average Doc Fee: $85
State: Colorado — Average Doc Fee: $699
State: Connecticut — Average Doc Fee: $599
State: Delaware — Average Doc Fee: $475
State: Florida — Average Doc Fee: $999
State: Georgia — Average Doc Fee: $599
State: Hawaii — Average Doc Fee: $395
State: Idaho — Average Doc Fee: $399
State: Illinois — Average Doc Fee: $347
State: Indiana — Average Doc Fee: $199
State: Iowa — Average Doc Fee: $180
State: Kansas — Average Doc Fee: $499
State: Kentucky — Average Doc Fee: $450
State: Louisiana — Average Doc Fee: $425
State: Maine — Average Doc Fee: $499
State: Maryland — Average Doc Fee: $499
State: Massachusetts — Average Doc Fee: $459
State: Michigan — Average Doc Fee: $260
State: Minnesota — Average Doc Fee: $125
State: Mississippi — Average Doc Fee: $425
State: Missouri — Average Doc Fee: $565
State: Montana — Average Doc Fee: $299
State: Nebraska — Average Doc Fee: $299
State: Nevada — Average Doc Fee: $499
State: New Hampshire — Average Doc Fee: $375
State: New Jersey — Average Doc Fee: $695
State: New Mexico — Average Doc Fee: $339
State: New York — Average Doc Fee: $175
State: North Carolina — Average Doc Fee: $699
State: North Dakota — Average Doc Fee: $299
State: Ohio — Average Doc Fee: $250
State: Oklahoma — Average Doc Fee: $289
State: Oregon — Average Doc Fee: $115
State: Pennsylvania — Average Doc Fee: $449
State: Rhode Island — Average Doc Fee: $399
State: South Carolina — Average Doc Fee: $399
State: South Dakota — Average Doc Fee: $115
State: Tennessee — Average Doc Fee: $500
State: Texas — Average Doc Fee: $150
State: Utah — Average Doc Fee: $399
State: Vermont — Average Doc Fee: $180
State: Virginia — Average Doc Fee: $599
State: Washington — Average Doc Fee: $150
State: West Virginia — Average Doc Fee: $175
State: Wisconsin — Average Doc Fee: $199
State: Wyoming — Average Doc Fee: $500

Are Documentation Fees Legal?

Yes, documentation fees are legal in all 50 states. However, some states put a cap on the amount dealerships can charge:

- California: $80 maximum
- New York: $75 maximum
- Minnesota: $75 maximum
- Oregon: $150 maximum
- Illinois: $300 maximum

In states with no cap, dealerships can charge whatever they want for doc fees, as long as they disclose the fee upfront. Many consumer advocates are pushing for stricter regulations on doc fees to protect car buyers from excessive charges[5].

The Bottom Line

Documentation fees are a reality of buying a car from a dealership. While they are frustrating, they are legal and usually non-negotiable.

The best way to combat high doc fees is to shop around, know what fees to expect in your state, and negotiate the overall price of the vehicle.

Citations:

[1] https://www.youtube.com/watch?v=FFJPeb4hcy4
[2] https://www.youtube.com/watch?v=nrPDmdUOgA4
[3] https://www.youtube.com/watch?v=XQiN3iV1jHA
[4] https://www.youtube.com/watch?v=-iaS9Cc8yzU
[5] https://www.youtube.com/watch?v=TqaSyeG9IIs